Blockchain needs teamwork to make the value dream work
Since its early years, distributed ledger technology (DLT)—and specifically, blockchain—has been on the insurance industry’s radar as a potentially transformative tool for core processes and business models. I speak with clients about blockchain on a regular basis. And Accenture research found that more than 80 percent of executives reported that their companies have either adopted or plan to adopt DLT across one or more business units.
Pilots and proofs of concept (POCs) have shown varying levels of success, but until recently, firms were uncertain on how to realize return on investment in production. Until now.
Leading insurance organizations are now seeing blockchain’s true value as a catalyst for business ecosystem transformation. That transformation requires companies to work together to create value. In short: teamwork is what makes the blockchain dream work.
Before I dive into teamwork, let me first dispel the common misconception that blockchain is simply bitcoin. Bitcoin operates on blockchain, but blockchain has a much wider applicability—for business in particular. (Interestingly, bitcoin insurance is an emerging market that I’m sure we will connect on soon.)
To accurately and simply define blockchain, I’ve pulled from the Accenture Ultimate Guide to Blockchain for Insurance:
In short, blockchain is an ideal tool for insurance, an industry in need of more efficiency, as well as consistency, security and privacy of data in an ever-evolving digital landscape. Which brings me back to the breakthrough.
As with any implementation, it’s not the technology that creates the value, but how it is implemented. First, we need to see blockchain and other DLT as a foundational technology, rather than a standalone solution. Second, we need to be open to finding partners who share the same vision. That shared vision is what can take pilots and POCs to production. (DLT is itself a member of a mighty team, along with artificial intelligence, extended reality and quantum computing—DARQ Power—so it’s fitting that the key to its success lies with teamwork.
